Bucks Orthopaedic Surgery Associates, P.C. v. Ruth

925 A.2d 868, 2007 Pa. Super. 151, 26 I.E.R. Cas. (BNA) 276, 2007 Pa. Super. LEXIS 1543
CourtSuperior Court of Pennsylvania
DecidedMay 30, 2007
StatusPublished
Cited by34 cases

This text of 925 A.2d 868 (Bucks Orthopaedic Surgery Associates, P.C. v. Ruth) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bucks Orthopaedic Surgery Associates, P.C. v. Ruth, 925 A.2d 868, 2007 Pa. Super. 151, 26 I.E.R. Cas. (BNA) 276, 2007 Pa. Super. LEXIS 1543 (Pa. Ct. App. 2007).

Opinions

OPINION BY

BOWES, J.:

¶ 1 Robert M. Ruth, M.D. appeals from the judgment entered on an arbitration award in favor of his former employer, Bucks Orthopaedic Surgery Associates (“Bucks”), a professional corporation engaged in the practice of orthopaedic surgery. We vacate and remand for trial.

¶ 2 The record establishes the following. Appellant joined Bucks as an orthopaedic surgeon in 1996 and became a shareholder in 2001. Appellant left the practice in July 2003. On October 23, 2003, Bucks filed a statement of claim with the American Arbitration Association (“AAA”) pursuant to the dispute resolution clause in its employment agreement with Appellant, alleging that Appellant left the practice prematurely. Appellant objected to the jurisdiction of the AAA; however, his objections were denied. On November 1 and November 2, 2004, the matter was arbitrated, and on March 2, 2005, the arbitrator issued an award of $80,000 in favor of Bucks. The arbitrator ruled against Appellant on various counterclaims and refused to rule on other counterclaims, concluding that he lacked jurisdiction. On March 24, 2005, Appellant filed a writ of summons against Bucks seeking to exercise his de novo right of appeal under a provision of the employment agreement. The relevant portion of the employment agreement, which was drafted by Bucks, contained the following arbitration clause:

22. Arbitration. Should any dispute arise concerning the interpretation of the terms of the Contract, or otherwise, the parties shall submit the same to binding arbitration pursuant to the Commercial Arbitration Rules of the American Arbitration Association then in effect. Within thirty days after the receipt of the award by the Board of Arbitration, the parties hereto reserve the right to exercise any judicial remedies by appealing such award to a court of competent jurisdiction, wherein the matter shall be heard de novo. In the absence of such an appeal, the award of the Board of Arbitration shall be final and binding upon the parties hereto, their heirs, executors, administrators, legal representatives, successors and assigns.

Agreement, 4/18/96, at 16-17 (emphasis added).

¶ 3 After receiving notice of Appellant’s writ of summons, Bucks filed a petition to confirm the arbitration award on April 29, 2005, and on July 20, 2005, Appellant filed a petition to vacate the award. On April 5, 2006, the court confirmed the award, finding that Appellant’s challenge was improper. This appeal followed entry of judgment on the award.

¶ 4 In the case at bar, Appellant raises three issues challenging the trial court’s confirmation of the arbitration award:

(1) Did not the trial court err when it confirmed an arbitrator’s award arising from an arbitration process to a contractual provision drafted by an Employer that expressly and clearly provided that any arbitration award becomes final and binding only if neither party appeals to court and elects to have a trial de novo and the Employee filed a timely appeal and provided clear notice of his request for a trial?
(2) Did not the trial court err when it found the Employee waived his right to appeal the award because he failed to go to court seeking a pre-arbitration stay even though the [871]*871Employee raised objections to the arbitration before the Arbitrator and he had no legitimate ground for a stay?
(3) Did not the trial court err by confirming the arbitration award without giving the Employee an opportunity to obtain a ruling on issues raised in his prior Petition to Vacate that Award?

Appellant’s brief at 2.

¶ 5 Our standard of review of a trial court’s decision to affirm an arbitration award arising from a written contract and involving only questions of law is de novo, and our scope of review is plenary. See Hartford Ins. Co. v. O’Mara, 907 A.2d 589, 593 (Pa.Super.2006). An agreement to arbitrate a controversy is presumed to be an agreement to submit to common law arbitration unless the agreement is in writing and expressly provides for arbitration pursuant to the Uniform Arbitration Act (“UAA”) or another statute. 42 Pa.C.S. § 7302(a). Here, the parties submitted to common law arbitration in accordance with the commercial arbitration rules of the AAA. Midomo Company, Inc. v. Presbyterian Housing Development Co., 739 A.2d 180, 183 (Pa.Super.1999) (“An agreement to arbitrate in accordance with the Rules of the AAA is an agreement pursuant to common law arbitration.”); Runewicz v. Keystone Ins. Co., 476 Pa. 456, 383 A.2d 189, 191 (1978).

¶ 6 In the instant case, the lower court affirmed the arbitration award relying upon 42 Pa.C.S. § 7342(b),1 and held that section 7342(b) has been interpreted to require that any challenge to the arbitration award be made in an appeal to the Court of Common Pleas by the filing of a petition to vacate or modify the arbitration award within thirty days of the date of the award. Lundy v. Manchel, 865 A.2d 850, 853 n. 2 (Pa.Super.2004); see also Sage v. Greenspan, 765 A.2d 1139, 1142 (Pa.Super.2000), appeal denied, 566 Pa. 684, 784 A.2d 119 (2001).

¶ 7 Initially, we note that procedural rule 42 Pa.C.S. § 7342(b) is exclusively applicable to binding common law arbitration. In the present case, pursuant to the written contract and for reasons discussed infra, we find that the parties did not consent to final and binding arbitration. Upon close examination of Appellant’s writ of summons, we conclude that it was actually a petition to vacate. See Fortune/For-sythe v. Fortune, 352 Pa.Super. 547, 508 A.2d 1205, 1208 (1986) (holding that the amended petition for reconsideration was actually a petition for modification and thus finding it proper to look beyond the title of the amended petition and consider its contents in order to characterize it).

¶ 8 Here, Appellant specified in his writ of summons, under the section labeled “appeals,” that he was appealing the AAA award with respect to his employment contract. Bucks received prompt notice that Appellant was appealing the arbitration award and had commenced an action against it pursuant to his de novo right of appeal under the employment agreement. It is thus evident that Appellant sought to appeal the arbitration award, and that his writ of summons should properly be viewed as a petition to vacate pursuant to the contract provision that permits de novo review. See Gemini Equipment Co. v. Pennsy Supply, Inc., 407 Pa.Super. 404, 595 A.2d 1211, 1213 n. 2 (1991) (“[W]e shall [872]*872regard as done that which should have been done.”); Com. ex rel. Saltzburg v. Fulcomer, 382 Pa.Super. 422, 555 A.2d 912, 915 n.

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Cite This Page — Counsel Stack

Bluebook (online)
925 A.2d 868, 2007 Pa. Super. 151, 26 I.E.R. Cas. (BNA) 276, 2007 Pa. Super. LEXIS 1543, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bucks-orthopaedic-surgery-associates-pc-v-ruth-pasuperct-2007.